Wait. Xbox One selling very poorly equals industry getting smaller? Come on man, that is nothing but excuse for its weak sales. If that were the case, than PS4 should be suffering also. Instead it is equaling X1's entire quarter shipped figure in just one month. And it is sold to consumers not retailers.

Yep, the industry is plenty healthy, its just Xbone sales that aren't.

Although the Xbox One’s success has been repeatedly overshadowed by the dominance of the PlayStation 4, Microsoft CFO Amy Hood hinted in a recent earnings call that market saturation for the new console might be approaching sooner than expected. Gamasutra reports that Microsoft shipped 1.2 million Xbox Ones in the third fiscal quarter (January 1st – March 31st), which contributed heavily to the 41% year-over-year increase in revenue for Microsoft’s Devices and Consumer Hardware division. Unfortunately, it appears that those millions of Xbox One consoles aren’t exactly flying off the shelves.

During the earnings call, Hood said that Microsoft “expect[s] to work through some inventory in Q4 [April 1st - June 30th],” mentioning “channel inventory drawdown for Xbox consoles.” From Gamasutra’s perspective, Hood’s statement implies that Microsoft may slow or even stop Xbox One production altogether until demand picks up. We know that the company has shipped 5 million consoles to retailers since launch, but Microsoft hasn’t been as forthcoming with actual end user sales data.

It’s still too early to tell whether or not the Xbox One has plateaued at its $500 price point, but it sounds like Microsoft is not entirely optimistic about growing its market share extensively over the next few months. Of course, that could all change if Microsoft makes a splash at E3 in June.
Microsoft did not immediately respond to a request for comment.

The industry may get smaller than last gen because it will be unlikely all those casuals who bought the Wii won't be in it for round 2. (Grandmas, Grandpas etc)

That said we'll likely see an increase in real gamers as more youths get older as I believe has always been the trend and with the recent indie boom on consoles it will likely mean we'll see more sales of games than ever before.

At E3, I expect microsoft conference to have a timed exclusive moneyhat of NEXTGEN GTA V. Followed by 30 CGI trailers of fictional games one after the other to get the fanboys wet. Of these only about 5 will see the light of day, heavily downgraded at release.
I expect some of these to be F2P games to combat the hype of Planentside 2, everquest 2, and H1Z1.

They may drop live, or atleast half the cost of live and release apps like netflix from the shackles of live.

Sounds crazy, but i think its time for crazy.

Originally Posted by Lefein

It's hard to make a case for the industry shrinking when the PS4 is outselling the iPhone.
[video=youtube_share;JxJM13QipXU]http://youtu.be/JxJM13QipXU[/video

How could this happen with both of them selling 80 million units last gen? (Edit: lame)

When sales for both consoles have to slowed down, it could be interesting to compare tendencies between sales.

It's easy most of those 360 owners only bought one because of the circumstance and were originally PS2 owners who went back to Sony with either the PS3 or PS4. The xbox never had a huge fan base and benefited from a cheaper price, earlier release and Sony's mistakes. Plus many people had to buy multiple 360s and MS always counts shipped not sold. So we don't know the actual number of 360s sold.Notice COD was the most popular game on the 360 and that fanbase only cares about playing together and have migrated to PSN.

Xbox One Sales More Than Double in June with New $399 Option and Unveiling of Holiday

Over the past month, we’ve seen a strong spike in interest in our Xbox One console options, including the new $399 offering, and the amazing lineup of games announced during E3. Since the new Xbox One offering launched on June 9th, we’ve seen sales of Xbox One more than double* in the US, compared to sales in May, and solid growth in Xbox 360 sales.
We’re excited to welcome so many fans to Xbox this summer and we can’t wait for them to get their hands on the wide selection of new games available this year on Xbox One, including Halo: The Master Chief Collection, Sunset Overdrive, Forza Horizon 2, and Ori and the Blind Forest. Xbox One is the only place you can play these games along with creative independent titles and blockbusters such as Assassin’s Creed Unity,Call of Duty: Advanced Warfare, Destiny, Evolve, Grand Theft Auto V, and dozens more. We’re honored that Xbox One was awarded with the best games line-up of 2014 by game critics at E3 and our fans have a lot of amazing new games to look forward to in the coming months.
Starting in August with the release of Madden NFL 15, new blockbuster hits will launch for Xbox One at an incredible pace throughout the fall, as we head into the holiday season. Gamers love the holidays and we are lining up incredible deals and special promotions to celebrate. The fun is just getting started and we can’t wait to share more exciting news soon.
*- Internal data based on retail calendar and sold through numbers

dont know what "retail calendar" means there...but what this Press Release means is that they still got outsold by the PS4...because after 6(?) months of being beaten in NPD's...they would be shouting it from the rooftops if they were the #1 hardware

"double the sales" sounds nice when you first hear it...but when you realize last month was only ~77k because everyone knew about the price drop coming...AND June NPD's cover an extra week?...

hmmm, googled it. Seems to refer to 5 week calendar versus 4. meh......whatever. Touting "internal data" right before NPDs come out isn't a good sign. Guess we will know in a couple of days. I really thought the price drop would have done.....something.

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